The first phase of the project has been scheduled for completion in Q4 2016. (Image source: Alan Stark/Flickr) A consortium of local and international banks in Kuwait have agreed to provide financial aid of up to US$1.4bn for the upcoming Az-Zour North Power and Desalination plant project in the country

According to Reuters, the project’s financiers are National Bank of Kuwait (NBK), Japan Bank for International Cooperation, Nippon Export and Investment Insurance, Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank.

The power and desalination plant project is part of a US$106bn development that was announced by the Kuwaiti government in 2010, which also includes a refinery, new airport and major causeway.

National Bank of Kuwait said Azour North One, the company managing the project, will offer up to 50 per cent of the shares of the venture in an initial public offering (IPO) once the plant is operational. Kuwaiti institutions will own a 10 per cent stake in the company.

South Korea's Hyundai Heavy Industries will build the first phase of the project, which comprises a 1,500 MW natural gas-fired power plant and seawater desalination plant.

Hyundai said the first phase of the project has been scheduled for completion in Q4 2016.

NBK chief executive officer Shaikha al-Bahar said, “This is an indication of the improvement in the execution of Kuwait's development plan.”